Tauranga is the first location in the country to test a new online property auction site.

Locally-owned website PropFi gives house-hunters the option of bidding in real time on properties from the comfort of their own home, or wherever they connect to the internet.

Ray White real estate agent Ian Grindle says his Tauranga office has have been given the opportunity to be the first in the country to be featured on the site, which has been open to the public since October.

'Our first property was promoted using a $1 reserve, and ultimately sold for $700,000. The auction started at 6pm on the night, running for roughly an hour and 10 minutes, and involved people bidding entirely online.”

He says a strict registration process ensures everything is legitimate, and legalities are taken care of.

'The website developers have spent a lot of money on the software and compliance with all the rules and regulations around auctions. They've also engaged with RealMe, the government's identity verification system, and California-based Netverify, which uses your driver's license and a new photo uploaded by yourself, to confirm your identity.

'Basically it prevents people from bidding and running away. Anyone can view the site, but you can't go to the auction room unless you're registered.”

Property files such as building reports or rental appraisals can be uploaded electronically to the site, to be viewed by bidders. Legal documents can be downloaded and emailed to lawyers by potential bidders prior to auctions beginning.

Ian thinks the site will probably start to expand in the new year, bringing in more real estate offices. He says it adds another dynamic to the real estate market.

'I think it's another string to the bow for real estate agents. I don't think it's a replacement for other forms of marketing, including normal auctions, but it's another opportunity for agents to embrace technology.”

For more information visit the website here.